Germany says Instex barter mechanism to work to enable more transactions avoiding US sanctions on Tehran
European
nations sent medical supplies to Iran in the first transaction under a
mechanism developed to trade with Tehran bypassing US sanctions, German
Foreign Ministry announced Tuesday.
"France,
Germany and the United Kingdom confirm that Instex has successfully
concluded its first transaction, facilitating the export of medical
goods from Europe to Iran. These goods are now in Iran," the ministry
said in a statement.
Instex --
Instrument in Support of Trade Exchanges -- has been set up by the three
countries over a year ago to enable what they said was "legitimate"
trade with Iran.
Mirrored in Tehran
by STFI -- Special Trade and Finance Institute -- the mechanism
essentially removes US dollars from transactions with Iran, instead
setting up barter-based deals, with Tehran exporting oil in exchange for
goods and services rather than cash.
EU claims it only opens door to humanitarian exports to Iran, such as food and medicines.
"Now the first transaction is complete, Instex and its Iranian
counterpart STFI will work on more transactions and enhancing the
mechanism," Berlin said.
